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Recently ANZ provided an offer to its investors about a new hybrid security called Capital Notes 3. With margins between 3.60% and 3.80% above the bank bill rate these instruments could be considered enticing when compared to current term deposit rates. However the attractiveness of a hybrid security investment needs to be weighed up against the terms on which they’re offered.

Distinguishing between retail and sophisticated investors ensures investors are getting the right level of access and disclosure when investing in financial products. This will become even more important should the Federal government introduce the recommendations put forward in the Murray inquiry. Peta Tilse, managing director of Sophisticated Access, has made distinguishing investor easier through an online sophisticated investor registry.

Professional Planner The Murray Inquiry may prompt the Federal Government to implement changes distinguishing between retail and sophisticated investors. Peta Tilse, founder of Sophisticated Access, the online sophisticated certificate registry, says clarity is key for consumers to get ‘fair treatment’ from their financial advisors and providers. http://www.professionalplanner.com.au/investment-2/2015/01/06/retail-and-sophisticated-iivestor-divide-crucial-in-post-murray-world-33441/  

If the Federal Government introduces recommendations brought about from the Murray inquiry, differentiating between sophisticated (or wholesale) investors and retail investors will be of the utmost importance in order to avoid repeating the costly mistakes made in the past.